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B&N sold five percent of the Nook Media to Pearson for $89.5 million

Staff writer ▼ | December 28, 2012
Barnes & Noble sold five percent of the Nook Media to Pearson for $89.5 million in cash, valuating the unit at $1.789 billion.
Barnes & Noble Nook Media
Barnes & Noble Nook MediaBarnes & Noble sold five percent of the Nook Media to Pearson for $89.5 million in cash, valuating the unit at $1.789 billion.


Following the closing of the transaction, Barnes & Noble will now own approximately 78.2% of the NOOK Media subsidiary and Microsoft, which also holds preferred membership interests, will own approximately 16.8%. Subject to certain conditions, Pearson will earn the option to purchase up to an additional five percent ownership in NOOK Media.

"Pearson's strategic investment in NOOK Media will accelerate customer access to digital content by pairing its leading expertise in online learning with NOOK Media's expertise in online distribution and customer service. This will facilitate improved discovery of available digital content and services, as well as seamless access," said the company in the statement.

William Lynch"We formed Nook Media to be a leader in the exploding market for digital content. Pearson is a forward thinking company similarly focused on reading and learning, with powerful assets and a terrific management team. We welcome their partnership in NOOK Media, and look forward to working with them and Microsoft to deliver great digital experiences for our shared customers," said William Lynch, chief executive officer of Barnes & Noble, Inc.

Will Ethridge"This new agreement extends our partnership and deepens our commitment to provide better, easier experiences for our customers. With this investment we have entered into a commercial agreement with NOOK Media that will allow our two companies to work closely together in order to create a more seamless and effective experience for students," said Will Ethridge, CEO of Pearson North America.

Barnes & Noble announced consolidated revenues for the second quarter of $1.9 billion, a decrease of 0.4% as compared to the prior year. Second quarter EBITDA increased 16% as compared to a year ago to $65 million. The Nook segment, which consists of the company's digital business (readers, digital content and accessories), had revenues of $160 million for the quarter, increasing 6% compared to a year ago. Digital content sales increased 38% for the second quarter over the second quarter in the prior year.


 

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